OCR

1962 Iron Ore Long term contracts, and adequate reserves to service these contracts, characterized Utah's position in the domestic iron ore markets. The direct shipping of ores from the Company-owned Iron Springs mine in Utah was now supplemented by its beneficiated ore produced in the new plant completed in 1961. The multi-phase $50, 000, 000 expansion program for Marcona Mining Company was on schedule, with the first three phases completed and in operation. The last two phases were nearing completion and when operational, the total annual capacity would be in excess of 6 million tons of high grade iron ore and pellets . The major elements of this whole program were: added crushing and stock pile facilities, a two-mile down- hill belt conveyor, beneficiation facilities , a pelletizing plant, and a new deep water pier installation including shiploader and complete pierhead facilities. Ocean Shipping and Ore Sales Marcona's ore is marketed throughout the world by Cia. San Juan S. A. , in which Utah has the same equity and voting interest as in Marcona. Cia. San Juan's wholly owned subsidiary, San Juan Carriers, Ltd. , owns six ships with a combined carrying capacity of 250, 000 deadweight tons, with a new- vessel, the SS "San Juan Pioneer" of 70,000 deadweight tone , joining the fleet in October 1962 to replace the SS "San Juan Trader" which was then sold. Two other ships were then under construction and, with, the addition of these ships, the capacity would be 390, 000 deadweight tons. In addition to San Juan's fleet, 55 other ships were chartered. Together these ships moved 34 billion ton miles of iron ore and other bulk cargoes during the last year. Coal The development of the Navajo mine continued with the erection of a giant 40 cubic yard dragline and the beginning of pre-mine stripping operations. The 350,000 kw. Four Corners power generating plant was being built by Arizona Public Service Company and Utah would begin supplying fuel to APS in January, 1963. This would culminate efforts begun by Utah over nine years before with its development of this coal field. The initial 350, 000 kw. plant can supply enough electricity for a city with a population of 500,000. Leased from the Navajo Indian tribe, this 25, 000-acre coal deposit contains one of the largest low-cost thermal energy reserves in the Western United States. It is estimated that this 600 -million ton reserve can supply enough -fuel to generate 2. 500, 000 kw. for more than sixty years .